News12 Oct 2010 16:35
LONDON (Metal-Pages) 11-Oct-10. European Nickel said it expects first production from its flagship Turkish mine in 2012, instead of next year, as it seeks fresh financing which it is confident it can secure by January 2011.
A permit that was cancelled, and is likely to be reinstated, has also contributed to the delay, executive deputy chairman Simon Purkiss told news agency Reuters.
The miner said in March that concentrate production was expected to start late next year. The UK-based developer expects its Caldag mine, near the port of Izmir, to produce 20,000 tonnes of nickel a year at full capacity and about 1,000 tonnes-a-year of cobalt as a by-product.
"We are putting together a club deal, being led by... Societe Generale and UniCredit - each of those have provisional approval for $50 million each," he said.
"The banks are open for business - for the right sort of projects."
Provided a forestry permit that was cancelled in March due to conflicts with domestic regulation is reinstated shortly, as expected, Caldag operations should roll into full production by the end of 2012, he said.
Caldag is reckoned to have about 375,100 tonnes of nickel, the miner said.
European nickel announced in March that it will merge with Perth-based explorer Rusina Mining. The purchase gained European Nickel access to Rusina's flagship development project in the Philippines, which is slated to more than double the miner's total production within five years.
"In regards to the Acoje project in the Philippines, we've done a pre-feasibility project at 25,000 tonnes of nickel a year, with 1,000-1,200 tonnes of cobalt," he said.
As industry seeks to lock in lower-cost concentrate supply through purchases higher up the chain, so Chinese stainless steel producers have been visible in the hunt to secure nickel ore, he said, adding that a tie-up may be an option.
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